Occupational Crime and Avocational Crime Essay Example | Topics and Well Written Essays - 1000 words

Occupational Crime and Avocational Crime - Essay Example One of the more important challenges confronting the financial heath of retail companies is employee theft. A study undertaken by Hollinger and Pernice (1998) determines that employee theft is the primary cause of inventory shrinkage in retail companies, culminating in losses of billions of dollars per annum. Not only had that but, in immediate comparison to shoplifting, the researchers found that while a single incident of shoplifting averages $212.68, one incident of employee theft averages $1,058.20. Within the context of the aforementioned comparison, it is hardly surprising to discover that employee theft is the primary factor behind inventory shrinkage.Given the dimensions of the problem, as articulated in the preceding paragraph, it is incumbent upon retail companies to design and subsequently implement a strategy as would confront and overcome employee theft. Hollinger and Pernice (1998) maintain that electronic surveillance has, over the years, proven its effectiveness and, in immediate comparison to other strategies, has proven to be â€Å"the most popular loss prevention system† (Hollinger and Pernice, 1998, par. 6). The knowledge that their crime may be recorded and that they may have to face the concomitant legal and career repercussions functions to control an employee’s desire or tendency to steal. As such, the adoption of electronic surveillance may be a solution to the problem.The fact is that such systems are expensive and function to demoralise employees. Friedrichs (2004) emphasizes, other than the cost factor, electronic surveillance may not be the optimal solution to inventory shrinkage due to the negative effect that such systems have upon employee loyalty. In other words, despite the fact that the system has a proven advantage, it has an undesirable effect on employee morale. Rather than install expensive electronic surveillance systems, it is more advisable for a retail company to comprehend the nature of the workplace environment and the factors therein which either allow or motivate such actions. Friedrichs (2004) argues that employee disgruntlement, borne out of the feeling of being underpaid, overworked and unappreciated, and the existence of opportunities to steal are the primary causal factors of inventory shrinkage. In other words, a lack of commitment to the workplace, concomitant with workplace disorganization compels employee theft. The solution to employee theft, as explained in the